08th Nov, 2017
, , Designation
Growth is the ultimate objective of every business owner and expansion to different markets is critical for long-term sustainable growth. While expanding your business to different geographies provides greater opportunity for profitable growth, it is not that simple a journey overall – Ask any CEO or Founder and you’d have touched their biggest pain point as well as their greatest ambition.
Right from understanding local market trends , establishing new business partnership to customizing your product lines as per the market dynamics of that specific geography, there are several milestones that you need to achieve before establishing yourself as a global player.
Is your Expansion Plan aligned with the Long-term Vision? Let’s answer some bigger Qs…
Have you researched the market well?
It is always advised to know the route before beginning on any journey, same is true in the case of global footprint expansion too. It’s important to have a detailed analysis of your target market, potential customer base, competition scene in the market etc. This will help you determine efficacy of your move towards the global shores.
Have you localized your strategy yet or plan to go by tested, traditional policy?
Even if you expand in another city, localization is the key which will help you sail through. If this golden rule is not paid heed, there is a possibility of everything else falling flat. This localization element only will help you understand, as well as address the unique market conditions that are influenced by cultural, economic and political climate of that particular geography. Local hiring is also a key component to consider based on your operation scale.
Does your team spell versatility?
It is critical for businesses to get the right mix of people aboard to sustain your geo-expansion efforts. Be it domain experts, crisis crusaders, leaders and creative mavericks – all you need is bunch of brains who don’t think alike all the time, otherwise your expansion will become a herd game with zero innovation.
Is your product actually market-ready?
A thorough gap analysis will equip you with information around what is it that you lack in the realm of dynamic customer expectation, competitors’ offering etc. and will allow you to create a not-just-ready but a differentiated product. It is also important to review government regulations, ensure testing & quality assurance etc.
How is your equation with local vendors?
By establishing co-cordial relationship with local businesses, you will be able to scale up your business while minimizing the associated risks and thus giving yourself an edge over others in a foreign land.
While the checklist may vary for different players, based on factors like their aspirations, their current scale of operations, their line of business and their choice of country for expansion, some ground rules like these will always stay.
It is important to put together a strategy keeping all the factors in mind so as to navigate through the expansion path easily. These prior considerations will help you to anticipate, as well as manage the complexities associated with doing business in a foreign land.